Jul-23-10 Federal Legislation on Unemployment Compensation Signed; Will Save New Jersey Trust Fund $800 Million
TRENTON, July 23, 2010 – Commissioner Harold J. Wirths said today, “As Governor Christie continues working to make New Jersey more attractive to employers and to grow jobs in the Garden State, the action taken this week by the federal government will help unemployed New Jerseyans provide for their families as they continue to seek employment during this recovery. In addition, the new legislation will save the New Jersey Unemployment Insurance Trust Fund approximately $800 million, with the federal Unemployment Insurance system paying 100 percent of the costs of Extended Benefits.”
When the federally funded tiers of Emergency Unemployment Compensation expired on June 2, the New Jersey Department of Labor and Workforce Development took steps to move affected claimants to the Extended Benefits or EB program.
Under the EB program, which normally is paid jointly by the state and federal unemployment insurance systems, New Jersey claimants can qualify for up to 20 weeks of benefits. The new legislation provides full federal funding for EB benefits until December 1, reducing the cost to the state trust fund.
By taking this step, benefit payments continued to go to approximately 48,000 claimants who could not collect from the federally funded tiers for the seven weeks between June 2, 2010 and the passage and signing of federal legislation that keeps the existing tiers accessible through November 30, 2010.
The new legislation does not provide any additional weeks of benefits but allows claimants to qualify for the four tiers until November 30 and makes the EB program entirely funded by the federal government.